Stocks to buy: NCC, Som Distilleries among three fundamental stock picks by HDFC Securities
NCC, Som Distilleries and Breweries and Allsec Technologies. The brokerage house suggests buying these stocks and adding on dips for a time horizon of two to three quarters. Also Read: Alkem Laboratories share price rallies over 11% in two days after Q2 results beat estimates; brokerages raise target Here are fundamental picks by HDFC Securities: NCC has a well‐diversified order book, robust execution capabilities, strong focus on debt reduction and improvement in working capital.
The company’s management has maintained 20% revenue growth guidance for FY24 and aims to achieve over 15% revenue growth in the long run. Softening of raw materials prices are likely to improve margins going ahead. HDFC Securities expects revenue, EBITDA and PAT to grow at a CAGR of 18%, 18.2% and 28% over FY23‐25E.
“We think the base case fair value of the stock is ₹164.25 (10.75x FY25E EPS) and the bull case fair value is ₹183.5 (12x FY25E EPS) over the next two‐three quarters. Investors can buy the stock in the band of ₹145‐150 and add more on dips to ₹130.50 band (8.5x FY25E EPS)," HDFC Securities said. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) HDFC Securities Retail Research believes Som Distilleries and Breweries’ prospects seem exciting at this juncture as it has delivered strong operating performance over the past few quarters and the management is aggressively targeting market expansion in a growing liquor market.
Company’s performance in H1FY24 was a beat on all fronts. “We believe the domestic market offers various opportunities in terms of sub-geographic penetration and market diversification. The management of Som
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